NAIROBI, April 8 Kenya's shilling remained
shackled to 86.60/70 in early trading on Tuesday, supported by
expectations that the central bank will keep draining excess
liquidity from the money market, traders said.
The 86.60/70 level - where the shilling ended Monday
- was nudging the local currency's support level, market
"It's at its top. It's a good opportunity for exporters,
they've been sniffing around," said Sheikh Mehran, senior trader
at Kenya Commercial Bank.
Traders anticipated the Central Bank of Kenya would maintain
its policy of absorbing excess liquidity to support the
shilling. Taking shillings out of the market helps lift the
overnight lending rate, making it more expensive for banks to
hold long dollar positions.
The central bank mopped up 10.9 billion shillings ($125.8
million) on Monday.
Bank of Africa said there was reduced dollar demand from
corporate clients now that the typical end-month rush for
dollars had subsided.
(Reporting by Richard Lough; Editing by Hugh Lawson)